I am a Certified Divorce Financial Analyst™ and the author of the Amazon best-selling books, Divorce: Think Financially, Not Emotionally - What Women Need To Know About Securing Their Financial Future Before, During, And After Divorce, Volumes I & II. My books are available on my website ThinkFinancially.com. I am also the founder of Bedrock Divorce Advisors, LLC, a divorce financial advisory firm that works exclusively with women throughout the United States, and the creator of ThinkFinancially.com, a website created to educate, empower and support women before, during and after divorce. In addition to my weekly blog for Forbes.com, I also contribute articles regularly to The Huffington Post, DailyWorth, More.com, Lawyers.com and many others. I have been extensively interviewed about the financial aspects of divorce for women by CBS and FOX Television News and such prestigious publications as The Wall Street Journal, Dow Jones, The Miami Herald, Smart Money, Consumer Reports, The Christian Science Monitor, and many others. I earned my BA degree in psychology from Columbia University and studied law at Pace University School of Law before becoming a divorce financial advisor. All articles/blog posts are for informational purposes only, and do not constitute legal advice. If you require legal advice, retain a lawyer licensed in your jurisdiction. The opinions expressed are solely those of the author, who is not an attorney. Landers@BedrockDivorce.com

Divorcing Women: Here's Where Husbands Typically Hide Assets

Could your husband be hiding assets? And if he is hiding assets, does that mean you won’t get the divorce settlement you deserve?

If you’re a woman going through divorce, you need to ask yourself those two tough questions, and while there’s obviously no way I can know the answers that apply in your case, I CAN tell you this:

Hiding assets during a divorce is sneaky, unethical and illegal –but it happens much more frequently than most women expect.

Think about it. Many couples today have complex financial portfolios. (Your list might include your marital residence, rental and/or vacation properties, bank and brokerage accounts, retirement and pension plans, stock options, restricted stock, deferred compensation, life insurance with cash value, perhaps a business or professional practice . . . and probably much more, too.) Even in the best of times, it can be extremely difficult to keep track of all these moving parts. When a couple decides to divorce, that task can get exponentially more complicated.

Unfortunately, as you go through the divorce process, your husband may try to take advantage of the situation by hiding income and/or assets. How can you tell? Are there steps you can take to help ensure you have an accurate accounting of your family finances?

(For example, in many divorces, a lifestyle analysis will be conducted by your divorce financial planner to establish a clear picture of your standard of living during the marriage. Not only can this lifestyle analysis be used to help determine alimony and child support, but it also serves as an invaluable tool to help determine if there could be hidden assets and/or income. The reason is simple. Once you analyze the couple’s marital living expenses and connect those expenses to all known sources of income, assets and loans, it is fairly easy to see if there is a mismatch. If the amount of living expenses exceeds the amounts of known income, assets and loans, a giant red flag appears! Discrepancies like this are one telltale sign of concealed income and/or assets. The goal of a lifestyle analysis in essence, is to determine if the amounts of reported income, assets and liabilities were sufficient to fund their marital lifestyle.)

After that, you also need to be fully aware of the most common unethical practices husbands use. Here is a small sampling of some of the tactics that can come into play. If your husband wants to undervalue or disguise/hide marital assets he may:

Purchase items that could easily be overlooked or undervalued. Maybe no one will notice that expensive antique/carpet that’s now at his office? Were you wondering why he recently made several significant additions to his coin/stamp/art collection?

Stash money in a safe deposit box, somewhere in the house or elsewhere. Think through your husband’s recent habits and activities. Does anything lead you to believe he is hiding assets in actual cash?

Underreport income on tax returns and/or financial statements. If it’s not reported, it can’t be used in a financial analysis.

Overpay the IRS or creditors. If your husband overpays, he can get the refund later, after the divorce is final.

Defer salary, delay signing new contracts and/or hold commissions or bonuses. This sneaky trick means this income won’t be “on the books” during the divorce proceedings.

Create phony debt. Your husband can collude with family members and/or friends to establish phony loans or expenses. Then, he can make payments to the family members or friends, knowing that he’ll get all the money back after the divorce is final.

Set up a custodial account in the name of a child, using the child’s social security number. He could also use his girlfriend’s social security number, in which case it might be difficult to locate the account.

Transfer stock. Your husband may transfer stock/investment accounts into the name of family members, business partners or “dummy” companies. After the divorce is final, the assets can be transferred back to him.

The list goes on and on . . . and it certainly begs the question: Why would a husband do any of these things? There are many possible reasons. He may fear not having enough money after the divorce. He may feel he’s getting revenge for an infidelity. Maybe he’s just greedy and feels that he deserves it! Whatever the reason, hiding assets, income and debt is not only unethical; it’s also illegal and subject to severe penalties IF discovered.

But even so, the burden of proof is often on the spouse with less financial resources (typically the woman) to prove any such unscrupulous behavior. That’s why women must play it smart. They must become knowledgeable and keep their eyes wide open. And ideally, they must be financially aware and involved from the onset of their marriage. Consistent involvement from the get-go is critically important for two reasons: 1) If your husband has been hiding income/assets over years or decades, it will become virtually impossible to trace/find them, and 2) Being financially aware and involved is in the foundation of happy marriages where a divorce is not even a possibility. Should your husband become incapacitated or die, a working knowledge of your assets/liabilities and income/expenses and where all your accounts and important documents are located will be vitally important.

As Miles Mason, Sr., JD, CPA, founder of Miles Mason Family Law Group, PLC, in Memphis, Tennessee, points out, women who have a working knowledge about their family finances can help identify changes that may signal a husband’s misdeeds.

“To detect schemes using financial statement manipulation, timing is important. Benchmarks are key,” Miles explains. “At one point in time, the target was not scamming, the marriage was solid, and generating income was a good thing. Finding that benchmark point in time helps figure out ways to “triangulate” what is truth and what is deception. Red flags describe noticeable changes in the financial status quo. Somewhere between the cause and effect, the red flag sticks out.”

But please, don’t misunderstand. I’m not recommending that you snoop. Scrolling through your husband’s private emails, listening to his calls or voicemails, or anything of that nature can land you in serious legal trouble, too. (You’ll need to consult with your divorce attorney so you understand precisely what is –and what is not –permissible under the laws in your state.)

Jeffrey A. Landers, CDFA™ is a Divorce Financial Strategist™ and the founder of Bedrock Divorce Advisors, LLC (http://www.BedrockDivorce.com ), a divorce financial strategy firm that exclusively works with women across the nation, who are going through, or might be going through, a financially complicated divorce.

He also advises happily married women who have seen their friends blindsided by a divorce initiated by their husbands and wonder (wisely) how financially vulnerable they’d be in that situation. Jeff developed the nation’s first Just in Case(TM): Secure Your Financial Future, a one-hour program, which quickly shows married women how to be prepared in the event of a future divorce with immediate, practical steps. He can be reached at Landers@BedrockDivorce.com.

All articles/blog posts are for informational purposes only, and do not constitute legal advice. If you require legal advice, retain a lawyer licensed in your jurisdiction. The opinions expressed are solely those of the author, who is not an attorney.

Post Your Comment

Post Your Reply

Forbes writers have the ability to call out member comments they find particularly interesting. Called-out comments are highlighted across the Forbes network. You'll be notified if your comment is called out.

Comments

- I am kasha i lives in uk and i was in a serious relationship with my ex guy for three good years.. One day we were in a dinner party, we had a little misunderstanding which lead to a Quarrel and he stood up and left me at the dinner party. i try to call him but he was not picking my calls so after than i contacted my brother and told him about it,my brother so much love me that he had to see him on my behalf,he told my brother that it is over between us.. Then i contacted a friend of mine that had this similar experience and she directed me to one of the spiritual diviner (maduraitemple@yahoo.com).at first i thought it was not going to be possible and i contacted him i was ask to come up with a little requirement,so i did what i was ask to do, after 3 days i was in my office when my ex guy called me and was asking me to forgive him and come back to him. i was very surprise it was like a dream to me,so ever since we have been happily married with one kid my lovely baby(Ceslav)…i wish you the best of luck…

I never believed in spell casting or magic. I felt silly even looking at spell sites online. I have been in tears over the loss of my husband. I found testimonies about Prophet Esene and I have no idea why I searched “spells” but I did. I ordered a love spell from prophetesene@yahoo.com and got my husband back Thanks for simply being legit and delivering where other sites never could.” Tamara Williams

My name is Benita and am from Canada I have to give this miraculous testimony,which is so unbelievable until now.I had a problem with my Ex husband 2years ago, which lead to our break up. when he broke up with me, I was not my self again, i felt so empty inside me, my love and financial situation became worst, until i read a post of a lady Catherine online about a spell caster who helped her in the same problem too his name is Dr Igodo. I email Dr Igodo the spell caster i told him my problem and i did what he asked of me, to cut the long story short. Before i knew what was happening my husband gave me a call and he came back to me in just 2days We have two kids together and we are happy with ourselves.

If you are interested to contact him and to testify like me, the great spell caster email address is docigodo@gmail.com and tel: +2348169138446. you are the best among all the spell caster online I hope you see my testimonies and also pray for me and my family. Benita Anderson Canada

Hello,Dr.Magbu i want to thank you for the returning spell you did for me my wife is back to me after using you returning love spell and she said there is no need for the divorce again thank you so much,i we never forget this great happiness you brought to my life. if you are in need of this powerful spell caster you can reach him through this Email address: reunitingexspell@gmail.com and his web site is http://reunitingexspell.webs.com/ i must tell this to the world you took a sad man like me and make me happy.

I was so impressed with the results of my love spell I told my friend to speak with you as well. Thank you ever so much for helping me get my love back. I know you said my energy and intent is as important as yours when casting this spell but I don’t think I could have done it without your support. Bless you! Any one who need help should contact Dr. odu via email: odumako@yahoo.com

Hello, my name is Miss Georgina peckett, I’m from USA. I want to inform you all that there is a spell caster that is genuine and real.I never really believed in any of these things but when I was losing Gilbert, I needed help and somewhere to turn badly. I found consultant.kalakuta spells and i ordered a LOVE SPELL. Several days later, my phone rang.Gilbert was his old self again and wanted to come back to me! Not only come back, the spell caster opened him up to how much I loved and needed him. Spell Casting isn’t brainwashing, but they opened his eyes to how much we have to share together. I recommend you if you are in my old situation to try it. It will bring you a wonderful surprises as well as your lover back to you. The way things were meant to be. you can contact the spell caster on– kalakutaspells@gmail.com he’s very nice and great.

My name is cynthia and my ex-boyfriend dumped me 8 months ago after I caught him of having an affair with someone else and insulting him. I want him back in my life but he refuse to have any contact with me. I was so confuse and don’t know what to do, so I visited the INTERNET for help and I saw a testimony on how a spell caster help them to get their ex back so I contact the spell caster and explain my problems to him….. he cast a spell for me and assure me of 3 days that my ex will return to me and to my greatest surprise the third day my peter came knocking on my door and beg for forgiveness. I am so happy that my love is back again and not only that, we are about to get married. Once again thank you agagu spell caster, you are truly talented and gifted contact his email: agagulovespll@gmail,com

My name is cynthia and my ex-boyfriend dumped me 8 months ago after I caught him of having an affair with someone else and insulting him. I want him back in my life but he refuse to have any contact with me. I was so confuse and don’t know what to do, so I visited the INTERNET for help and I saw a testimony on how a spell caster help them to get their ex back so I contact the spell caster and explain my problems to him….. he cast a spell for me and assure me of 3 days that my ex will return to me and to my greatest surprise the third day my peter came knocking on my door and beg for forgiveness. I am so happy that my love is back again and not only that, we are about to get married. Once again thank you agagu spell caster, you are truly talented and gifted contact his email: agagulovespll@gmail,com Enter Your Comment